Press Release

Commerce Secretary Gutierrez to Lead 2nd Congressional Delegation to Colombia

Continuing Push to Approve Key Trade Agreement

MONTEVIDEO, URUGUAY—U.S. Commerce Secretary Carlos M. Gutierrez today announced he will lead a second congressional delegation to Colombia from Oct. 12-14 as part of the Bush administration’s effort to push for approval of this key bilateral trade agreement. Gutierrez is in Uruguay to discuss trade and economic ties before going to Brazil and then Colombia.

“The US-Colombia FTA is great for American exporters and workers and for Colombian development,” said Gutierrez. "Colombian exporters receive duty-free access to the U.S. market. This trade agreement will give U.S. exporters the same access that Colombians have to our markets.”

“The Uribe administration is moving Colombia in the right direction. Violence is down and prosperity is up,” said Gutierrez. “The free trade agreement (FTA) is the most important step we can take to spur economic growth, reduce poverty, and help to stem violence in Colombia. An FTA will expand our commercial ties, encourage social justice, improve education and healthcare to support democracy and the rule of law.”

Gutierrez will lead his second U.S. congressional delegation to Colombia in a month to show the positive economic and social changes being driven by President Alvaro Uribe, a key U.S. ally. Gutierrez and the delegation will meet with government officials and members of the business community and civil society, including union leaders.

“Colombia’s positive path, since 2000, is directly due to the bipartisan success of Plan Colombia that President Clinton and then Speaker Hastert had the vision to support,” said Gutierrez. “The Colombia FTA is the logical extension of Plan Colombia.”

The trip will provide members of Congress with a unique opportunity to discuss labor, social justice and other concerns with key government officials. Members will be able to see for themselves a decrease in labor violence, the enhancement of the welfare of women and children, and the role this agreement will play in promoting positive social change and economic growth and opportunity. The members will also have the opportunity to see how the FTA will benefit farmers, businesses and workers in the United States who currently face discriminating duties on U.S. exports, which would continue without the FTA. In 2006, more than 90 percent of Colombia’s imports into the United States entered duty-free under unilateral U.S. trade preference programs, such as the Andean Trade Preferences Act (ATPA) and the Generalized System of Preferences (GSP), or under zero Most Favorite Nations (MFN) tariffs. This FTA will level the playing field by providing duty-free treatment for U.S. exports to the fast-growing Colombian market.

The delegation currently includes (subject to change): Rep. Gregory W. Meeks (D-NY-6); Rep. Bill Sali (R-ID-1); Rep. Doc Hastings (R-WA-4); Rep. John T. Salazar (D–CO-3); Rep. Eliot L. Engel (D–NY-17); and Rep. Jim McDermott (D-WA-7).

“Last month I led a bipartisan congressional delegation to Colombia to show members first hand how the FTA will help American workers, farmers and businesses,” said Gutierrez. “The members of Congress and I witnessed the remarkable outcomes of these bold initiatives in the country’s industrial hub. Colombia is stunning and is an example of an inspiring transformation.”

The three-day visit will start in Bogotá, Colombia, where the U.S. delegation will meet with President Uribe to discuss the pending free trade agreement with Colombia. The Secretary will also address the Bogotá Chamber of Commerce to highlight the economic opportunities of increased trade with the United States.

Gutierrez and the delegation will also visit Bojayá, an Afro-Colombian community on the Pacific Coast that the Uribe administration is rebuilding after it was destroyed by rebel groups and severe flooding. The visit will conclude in Medellin, Colombia, where the Secretary and delegation will see the Uribe administration’s commitment to reducing violence and promoting positive economic and social change. Secretary Gutierrez and the delegation will witness Colombia’s plans for integrating former paramilitary members—known in Colombia as the demobilized—back into civil society and the formal economy.

Background:
Through Plan Colombia there has been a steep decline in violence. By 2006, Medellin’s murder rate was down to 29 per 100,000 persons—lower than many major U.S. cities. Also, according to the State Department:

• Terrorist attacks dropped from 1,645 in 2002 to 646 in 2006.
• Homicides dropped 40 percent from 2002 to 2006.
• Kidnappings dropped 76 percent from 2002 to 2006.
  

Violence against trade unionist and other groups has dropped significantly.

Bilateral free trade agreements are one of the best ways to open up foreign markets for U.S. exporters. Currently more than 100 regional trade agreements are being negotiated around the world. Today, the United States has implemented FTAs with 14 countries. Last year, trade with countries with which the United States has FTAs was significantly greater than their relative share of the global economy. Although comprising 7.5 percent of global GDP, not including the United States, those FTA countries accounted for more than 42 percent of U.S. exports.

The United States is Colombia’s leading trade partner, accounting for 39.6 percent of Colombia’s exports and supplying 26.4 percent of the country’s imports in 2006. Colombia-U.S. bilateral trade has almost doubled over the past decade, from $9 billion a year in 1996 to approximately $16 billion in two-way trade in 2006, due in large part to the Andean Trade Preferences Act (ATPA). Colombia is currently the 29th-largest export market for U.S. goods. After Canada and Mexico, Colombia is the largest export market for U.S. farm products in the hemisphere.

For more information, please visit http://trade.gov/fta/index.asp.